Bitcoin News Today: Bitcoin Whales Abandon BTC Fortress, Pour Billions Into ETH Bet

A Bitcoin whale has executed a significant accumulation of approximately $50.7 million in Bitcoin, according to recent on-chain data and analytics from multiple sources. The whale, which has been dormant for seven years, recently initiated a large-scale rotation of assets, selling a massive portion of its BTC holdings—valued at $337 million—and using the proceeds to purchase Ethereum (ETH) and open substantial ETH long positions. This shift has been described as a strategic realignment of its portfolio toward Ethereum, signaling confidence in the altcoin’s potential amid growing institutional interest and technological developments. The whale’s current ETH exposure stands at over $577 million, with unrealized profits estimated at over $40 million as Ethereum’s price climbed above $4,600 [4].

The whale’s actions highlight broader market dynamics, with other large players also moving substantial sums from Bitcoin to Ethereum. One major entity, linked to Matrixport, reportedly funneled nearly $452 million in ETH into major exchanges while simultaneously withdrawing over 2,300 BTC, reinforcing the narrative of a shift in preference toward altcoins [5]. Additionally, a separate whale has moved 2,370 BTC valued at $266 million into exchanges over the past 24 hours, while aggressively stacking ETH worth $706 million across multiple positions. This whale’s Ethereum holdings now amount to 167,629 ETH, with a significant portion held in leveraged longs [3].

These whale movements have coincided with a broader distribution pattern among Bitcoin holders, with data from Glassnode showing that all wallet cohorts have shifted into a net selling mode. Notably, the 10–100 BTC wallet group has been the most active in distribution, while smaller hodlers continue to accumulate at lower price levels. The 100–1,000 BTC cohort, however, remains split between accumulation and distribution, with $105,000 identified as a key support level for Bitcoin. This threshold is critical as it marks the last major defense against further corrections and represents a significant cost basis for many long-term holders [2].

Bitcoin’s price has fluctuated in response to these whale-driven pressures. After a brief rebound above $115,000 in early August, the asset has since retreated to levels near $109,700. Analysts attribute the sell-off to a combination of thin liquidity, ETF outflows, and the impact of large-scale liquidations, which were exacerbated by a major early holder unloading 24,000 BTC in a single event. This move triggered approximately $500 million in liquidations and underscored the fragility of current market conditions [6]. Despite these short-term setbacks, some market participants remain cautiously optimistic. Onchain data suggests that large holders are withdrawing Bitcoin from exchanges at a historical low rate, indicating a potential buildup of accumulation activity that could provide upward pressure in the near term [5].

Ethereum, meanwhile, has benefited from institutional adoption and rising confidence in its long-term utility. Public companies now hold 2% of Ethereum’s total supply, with corporate ETH holdings surging from $70 million to $10.9 billion since April 1. Ethereum’s recent Dencun Upgrade, which slashed transaction fees by up to 98%, has further enhanced its appeal to institutional investors and DeFi participants [3]. As Ethereum’s dominance over Bitcoin grows, analysts are beginning to question whether Bitcoin will retain its position as the market’s sole anchor asset. While Bitcoin remains the preferred store of value, Ethereum’s expanding role in decentralized finance and tokenization may attract more attention from both retail and institutional investors [5].

Source: [1] BTC bull run over at $111K? 5 things to know in Bitcoin this ... (https://cointelegraph.com/news/btc-bull-run-over-at-111k-5-things-bitcoin-this-week) [2] Bitcoin holders 'distribute' as $105K becomes BTC's last ... (https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar105k-becomes-btc-s-last-stronghold) [3] Whale Rotation Alert: Bitcoin Dump, Ethereum ... (https://www.mitrade.com/insights/news/live-news/article-3-1063386-20250823) [4] Bitcoin Whale Abruptly Wakes Up After Lying Low for ... (https://dailyhodl.com/2025/08/23/bitcoin-whale-abruptly-wakes-up-after-lying-low-for-seven-years-gobbles-up-ethereum-after-dumping-337000000-in-btc-on-chain-data/) [5] Bitcoin Whale Rotation: Is BTC Losing Ground to Ethereum? (https://www.bitrue.com/blog/btc-whale-losing-ground-to-eth) [6] Asia Crypto News: BTC Fragility and ETH Rotation Signal ... (https://www.coindesk.com/markets/2025/08/26/asia-morning-briefing-btc-fragility-and-eth-rotation-signal-market-bracing-for-consolidation-without-new-liquidity)